Halifax change mortgage income multiples

by Aaron Strutt

Mar 20 2018

Halifax has changed the calculations it uses to work out how much applicants can borrow for a mortgage.

The bank has introduced a range of different loan-to-income multiples which increase if you have a more generous salary and a more substantial deposit. They also range if you are borrowing above or below £500,000.

The new loan-to-income rules allow single or joint applicants with a 10% deposit earning between £25,000 and £75,000 to qualify for 4.75 x salary mortgages. This reduces to 4.49 x salary for loans over £500,000 depending on the size of your deposit.

For single or joint borrowers with incomes above £75,000 the multiple increases to 5x times salary. It reduces to 4.75 x salary if the deposit is between 25.01% and 10%. This also reduces to 4.49 x salary for loans over £500,000 depending on the size of your deposit.

Aaron Strutt, product director at Trinity Financial, says: “More of the lenders are making changes to their loan-to-income multiples, and there is more of a shift towards using salary levels to work out the income multiple they apply.

“Many of the lenders are providing more generous income multiples to wealthier borrowers earning over £75,000 or £100,000. Santander and Barclays both lend up to 5.5 times salary, while Kensington can offer six times salary mortgages. 

Halifax limit applicants earning below £25,000 and those with a 5% deposit to 4.49 times salary mortgages.

Call Trinity Financial on 020 7016 0790 to secure a more generous income multiple